How to contact creditors for a reduced payment plan

If you're in financial problems, you may need to contact your creditors and request an alternative payment plan. This is when a letter to contact creditors can help you.

The Letter

Please enter Fax Information

Fax Number:

Your Name

Your Address

Your Phone #

Credit Bureau's Name:

Credit Bureau's Address:

Date

Dear Sir/Madam,

Re: Account Number

Due to some financial problems I am currently experiencing, I am unable to make payments on the account referenced above. However, I have no plans to file bankruptcy, and do not intend to default on my obligation.

I have communicated with some of my creditors asking them to accept reduced payments of $ in place of my regular payments of $ .I can assure you that I shall not add to my obligations until and unless my financial situation improves.

I shall update you about my financial situation at regular intervals and return to making my normal payments as soon as my situation improves.

By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.

Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.

Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.

Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.

The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.